iGATE Announces Completion of Patni Acquisition; Phaneesh Murthy appointed CEO of Patni
May 12 2011 - 6:25AM
Further to the purchase agreements entered into on Jan 10, 2011 to
acquire a majority stake in Patni, iGATE and Patni today
announced the completion of the acquisition.
Highlights:
- Transaction marks completion with the buyout of the principal
stock holders, Narendra Patni, Ashok Patni, Gajendra Patni and
General Atlantic, and 20% Mandatory Tender Offer ("MTO") to the
public shareholders. The MTO was fully subscribed giving iGATE a
majority stake of approximately 83% in Patni Computer Systems.
- Both iGATE and Patni will continue to exist as separate listed
entities and will work together on an integration exercise with the
advice of professional consultants and advisors. The two companies
will operate on an independent basis and in the best interests of
their respective stakeholders with a view to building value for
both sets of shareholders.
- As a consequence of the acquisition, the Board at Patni has
been reconstituted comprising the following: Jai Pathak, who will
serve as the Chairman of the Board, Phaneesh Murthy, CEO, Shashank
Singh, Co-Head of Apax India and Göran Lindahl, Member of iGATE
Board, are the new directors with existing members Vimal Bhandari,
and Arun Duggal continuing as independent directors.
- The Patni Board appointed Phaneesh Murthy, CEO, iGATE as the
CEO of Patni. Consequently, Jeya Kumar has stepped down as the CEO
of Patni.
- Surjeet Singh, CFO, Patni, will continue in office until 31st
May 2011 and then step down when the Board expects to appoint a new
Financial Officer.
Announcing the acquisition, Phaneesh Murthy said, "Successful
completion of the transaction was our single focus over the last
four months and I am very excited to formally move from integration
planning to integration execution between the two companies. Our
intent is to generate synergies out of the integration and, with
iGATE's differentiated iTOPS based Business Outcomes model coupled
with Patni's micro-vertical focus, deliver value to our
customers."
"Our integration focus is to bring revenue and earnings growth
in both companies and hence enhance shareholder value in both
organizations," he added.
On the customer reaction, Phaneesh said, "We believe there are a
number of cross selling opportunities across the 360 clients of
iGATE and Patni and will focus on improving service levels and
deepening our engagement with existing clients. The initial
feedback from the customers has been very encouraging. In the next
three years, our goal is to become the leader by capability in two
verticals and a significant player in at least three to four other
verticals."
"We will significantly expand our market presence and, pursuant
to our integration program, go to the marketplace with a common
identity called iGATE Patni. Under a new logo, iGATE Patni will
stand for the combined value of both the organizations. This common
identity will be represented by leadership across both the
organizations with Sean Narayanan, Sujit Sircar, Srinivas Kandula,
David Kruzner and Robert Massie from iGATE and Sunil Chitale,
Satish Joshi, Derek Kemp and Vijay Khare from Patni as the proposed
key executives," he said.
Talking about the talent in iGATE and Patni, Phaneesh said, "The
mood across employees in both the organizations is upbeat and I see
a clear enthusiasm in both teams eager to come together to create a
competitive entity."
"Tagged as the Best Employer in India over three years now, we
will strive to ensure a great career experience and a cohesive
environment for all 26,000 employees in days to come. In our
integration programs too, our goal is to ensure total smoothness
with no disruption in the existing day jobs," he concluded.
Highlights of iGATE and Patni together:
- Employee Base of 26,000 and a client base of
360.
- Two $100 million dollar clients, two $50 million dollar clients
and 36 $5 million dollar clients.
- Top five accounts contributing to 38% and top ten accounts
contributing to 49% of revenues.
- 10 Delivery centers across India, Mexico and Australia, and
over 50 offices in 20 countries.
About iGATE:
iGATE is the first Business Outcomes driven integrated
Technology and Operations (iTOPS) solutions provider with a global
delivery model. iGATE's unique business model aligns with
the client's strategic objectives to achieve operational
efficiencies, increase cost variability and rationalize their
current operating environment. With industry expertise spanning
decades, iGATE has developed the right solutions with its Business
Outcomes driven approach for industry verticals – Banking,
Insurance, Manufacturing, Retail, Health Care, Media &
Entertainment and Telecom & Hi-Tech.
The iGATE Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150
About Patni:
Patni is a global provider of IT services and business
solutions, servicing Global 2000 clients. Patni services its
clients through its micro-vertical focus in banking, financial
services (BFS) and insurance (I); manufacturing, retail and
distribution (MRD); life sciences; communications, media and
utilities (CMU).
Patni's service offerings include application development and
maintenance, enterprise software & systems integration
services, business and technology consulting, product engineering
services, infrastructure management services, customer interaction
services & business process outsourcing, quality assurance and
engineering services.
CONTACT: Media Contact:
Prabhanjan Deshpande "PD"
+91 80 4104 5006
PD@igatepatni.com
Investor Contact:
Araceli Roiz
+1 (510) 896 3007
Araceli.roiz@igatepatni.com
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